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Business, 21.11.2019 01:31 brentkellen6331

Emily is in the 35% marginal tax bracket. she can purchase a york county school bond yielding 3.5%interest and the interest is not subject to a 5% state tax. but she is interested in earning a higher returnfor comparable risk. which of the following is correct: a. if she buys a corporate bond that pays 6% interest, her after-tax rate of return will be less than ifshe purchased the york county school bond. b. if she buys a u. s. government bond paying 5%, her after-tax rate of return will be less than ifshe purchased the york county school bond. c. if she buys a common stock paying a 4% dividend, her after-tax rate of return will be higherthan if she purchased the york county school bond. d. all of these are correct. e. none of these are correct

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